Security risks claims are dissipating though the future is still unclear for Huawei
Huawei has been facing banning threats in major markets due to the US claims around the security risks. Initially, the US informed the members of Five Eyes (FVEY), a signal surveillance agency, comprised of Australia, Canada, New Zealand, the UK and the US about Huawei security risks.
The US has hinted to ban Huawei equipment and asked its allies to ban Huawei from their 5G infrastructure. So far, a number of announcements have been made across the world including Oceania, and the EU. Mr Trump can go ahead at least with some partial ban to show a way for allies and encourage them to take similar actions. Indeed, banning Huawei equipment would be a major risk for the company business particularly in North America, Europe and Oceania.
Various countries have started their own investigation into the matter. Meanwhile, the situation for Huawei has been improving, though it will take time. The UK National Cyber Security Centre has stated earlier this month that it can tackle any risks regarding Huawei and also ready to share its methods of tackling the risks with other countries. This has provided a lifeline for Huawei in such a crucial time. However, the statement was quickly eclipsed by a report from the UK defence and security think tank, Royal United Services Institute (RUSI).
In its report, RUSI warned that allowing Huawei in the country 5G infrastructure can be a threat to the UK national security. It has reiterated the action suggested by the US and some other countries and has also emphasised on the UK government to ban Huawei.
New Zealand initially stated that Huawei would be banned in its 5G infrastructure and stopped Spark from using Huawei equipment in its 5G network. However, Kiwi PM Jacinda Ardern later stated that Huawei was never excluded from its 5G infrastructure as it conducted their own research into the issue. It also now allowed Spark to use Huawei equipment. Spark has yet to decide about its future relationship with Huawei based on the intelligence provided by New Zealand GCSB (Government Communications and Security Bureau.
Commodity Inside understands that such a ban would incur economic costs as Huawei equipment and services are much more cost-effective than its rivals. Banning Huawei should be evaluated beyond political motivations. In the case of the US imposing any restriction on Huawei to entice other countries would be a futile attempt. Other than that, such bans could have already been imposed if any real threats were in sight.
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